Zell to choose Thomas Heneghan to lead Equity International: report

(Crain’s) — Sam Zell is expected to pick the CEO of mobile-home park owner Equity LifeStyle Properties Inc. as head of Equity International, the billionaire investor’s overseas real estate investment firm, according to a report.

The Wall Street Journal reported that Mr. Zell, chairman of both Chicago-based companies, is expected to recommend Thomas Heneghan, who has been Equity LifeStyle’s CEO since 2004, to succeed former CEO Gary Garrabrant, who co-founded Equity International with Mr. Zell in 1999 but left unexpectedly last month.

The appointment would be subject to the approval of limited partner investors in the firm’s latest fund, the paper reported.

“We are in the process of working with the LPs on a number of items and there have been no definitive decisions to date,” Mr. Zell, who has been serving as the firm’s interim CEO, said in a statement. Equity International “has a highly engaged ownership group that is still discussing the next steps for the business going forward.”

A spokeswoman for Mr. Zell declined to comment further.

Equity LifeStyle owns manufactured-home and RV parks, overseeing a portfolio of 382 properties in 32 states and British Columbia.

Mr. Heneghan has told the company “that he has not made any commitments to Equity International,” Equity LifeStyle said in a statement Monday.

“Even if my role as CEO changes, given my strong relationship with our chairman I expect to be able to continue contributing to the company’s success in the future as a member of the board,” Mr. Heneghan said in the statement.

Shares in the real estate investment trust fell 89 cents, or 1.3 percent, to $67.35 on Monday. Including dividends, the shares have returned 3 percent this year, vs. 8.5 percent for a Bloomberg index of manufacture-home REITs.